Bank Negara criticised for abolishing 20-day interest free period for credit card holders
Bank Negara has been criticised for its decision to abolish the 20-day interest free period for credit card holders.
Bukit Bendera Member of Parliament Liew Chin Tong said the move would add to the financial burden of the people.
He said it will also dampen the retail trade, which has already been weakened by poor consumption after the fuel price hike.
Liew said the Bank Negera's move would only benefit credit card providers as they will reap massive profits at the expense of card users.
Under previous arrangements, credit card holders enjoy a 20-day interest free period on their new retail transactions.
However, beginning July, only those who make full payments before the due date will be entitled to the interest free days.
Those who make only partial or minimum payments will be charged interest on the day the new purchases are posted to the card's account.